UBS Should Have 7 Years to Phase In Capital Rules, Swiss Say (2)

Switzerland’s government formally proposed giving UBS Group AG seven years to fully comply with higher capital requirements, confirming previous guidance.

The biggest banks in Switzerland, most notably UBS, should “provide full capital backing for their participations in foreign subsidiaries,” the government said in a statement on Friday when presenting a draft law.

That capital, measured as CET1 ratio, should be at 65% once the law takes effect and subsequently rise by 5 percentage points annually until the metric hits the 100% target, according to the statement.

The current Swiss proposals — assembled after the Credit Suisse rescue in early ...